Experts slam NSP projects

By JOANN ALBERSTAT Business ReporterPublished January 16, 2013 - 6:58pm

URB urged to reject $4.8m worth

The provincial regulator is being urged to reject $4.8 million in capital projects proposed by Nova Scotia Power.

The recommendations are coming from energy experts hired by the consumer and small-business advocates.

John Athas, a Boston consultant hired by the small-business advocate, said the provincial Utility and Review board should reject three projects budgeted to cost $3.7 million in total.

Paul Chernick, a Massachusetts consultant working for the consumer advocate, said the regulator should turn down a single $1.1-million proposal.

Nova Scotia Power asked the board in November to approve a $336.9-million capital plan for this year.

That is an $18.2-million increase in capital spending compared with last year.

The plan includes new projects, routine spending and carry-over items.

The cost is already factored into electricity rates, although the regulator still has to approve individual projects.

The biggest item that Athas said isn’t justified is $1.6 million for an additional transformer for the Lochaber Road substation in Antigonish County.

Athas said the cost is too high and a previous study didn’t pinpoint a need for a third transformer.

“The study recommended shifting some loads to other sources and utilizing the mobile transformers,” he said in a regulatory filing made public Wednesday.

The consultant also recommended that $1.3 million for steel tower painting be dropped because it is maintenance work, not part of the capital plan.

In addition, the consultant said $770,700 to upgrade 2.2 kilometres of underground distribution feeders in Halifax isn’t necessary.

Athas also said the board should reject part of the proposed $2.95 million cost of insulator replacements, saying new poles and conductors don’t need to be included. The amount in question is blacked out of the report.

Meanwhile, Chernick said Nova Scotia Power doesn’t need to spend $1.1 million to add equipment to the Bridgewater transmission substation.

The project would add a second capacitor bank.

Chernick said the equipment wouldn’t be used enough to justify the cost.

“(Nova Scotia Power) estimates that the capacitor bank would be operated 20 per cent of the time, all in the winter.”